Saudi Arabia wanted to drive out other producers within the industry, such as the US fracking firms, but these companies chose to take the price hit to maintain control of their wells.

However, it is rather coincidental that this sudden drop took place as renewable energy costs began to rival non-renewable sources for the first time.

Many people will compare energy options by their cost, so it can be argued that similar to how Saudi Arabia was trying to drive out its competition through lower costs of oil; the decision would also undercut the renewable energy industry, halting its growth.

And there are reasons for these industries to fear the rise of alternatives like solar energy. Renewable energy sources pose a risk to companies because there is less control of supply in the hands of the distributors.

The simplest way to compare energy options is by looking at their average cost. The sudden drop in oil prices looked like it would hamper the growth of renewable energy globally.

But despite this extreme drop in oil prices in recent years, solar energy, in particular, has continued to decrease in cost and has gained increased investment.

Workers installing solar panels Photo: skeeze

One reason this occurred was due to large investments by countries. China has been one of the largest investors in clean energy in recent years, focusing on wind and solar development while reducing its reliance on coal.

Many countries have continued to invest heavily in renewable energy in order to meet the demands of the Paris climate accord.

In the past, renewable energy has been looked on as expensive, inefficient, and lacking in financial support. The last few years have shown that it is capable of meeting growing energy demands, and government support have built confidence in corporations and investors.

Citigroup said in recent years that the current battle between cheap oil and renewables is so fundamental, that it will define the future of energy.

However, renewable energy has become a clear contender in the last decade. But change has to come from the top for there to be a lasting impact. If governments continue to improve their focus and investment on renewable energy, it will allow corporations and investors to do the same.

About the Author

Leigh McGowran

Leigh is a final year Journalism student at DCU with interests in the environment, radio presenting and film reviews.